Types of Corporations in Canada

Although not as pleasant a read as the information here at Treehouse, I find that often it's best to go straight to the source (in this case, the government) website:

The following is from canadabusiness.ca - which discusses the different types of business in Canada - Sole Proprietorship, Partnership, Corporations, Cooperatives

Corporations

Another type of business structure is incorporation. Incorporation can be done at the federal or provincial level. When you incorporate your business, it is considered to be a legal entity that is separate from the owners and shareholders. As a shareholder of a corporation, you will not be personally liable for the debts, obligations or acts of the corporation. When making such decisions, it is always wise to seek legal advice before incorporating.

Advantages:

• Limited liability
• Ownership is transferable
• Continuous existence
• Separate legal entity
• Easier to raise capital
• Possible tax advantage as taxes may be lower for an incorporated business

Disadvantages:

• A corporation is closely regulated
• More expensive to incorporate than a partnership or sole proprietorship
• Extensive corporate records required, including shareholder and director meetings, and documentation filed annually with the government
• Possible conflict between shareholders and directors
• Possible problem with residency of directors

The site also goes on to link more resources, including step-by-step instructions to incorporating federally, as well as links to provincial corporations (and the differences between a federal and provincial corporation)

Also, check out CYBF.ca for great information on setting up a business in Canada, as well as an interactive business plan creator.

I hope that helps get you started!